What CFOs need to know about the rise of CVC funds
Richard Morris was quoted in the Journal of Accountancy regarding the growth of corporate venture capital (CVC) funds, which invest in outside startups. Morris told the publication that the amount of money invested in CVCs will depend on what the company wants to accomplish in the long term. "Most CFOs would likely fund the CVC fund from their R&D project development funds," he said. "Evaluate what other companies are allocating to their CVC funds in your industry. You can also lower your financial investment by having your CVC division partner with venture capitalists and private equity firms that relate to your industry." Morris added that a failed CVC investment can still provide value in helping the company gather new information. "It's also valuable to know what doesn't work in your industry," he said. "A failed CVC investment is just R&D."